Wood Partners Announces 298-Unit, $75M Apartments in L.A.
- Aug 04, 2011
August 4, 2011
By Nicholas Ziegler, News Editor
There’s going to be a new luxury community available in 2013, as Wood Partners announced today that it acquired a four-acre development site in Warner Center, which sits in the Woodland Hills district of Los Angeles. The firm plans to begin construction on a 298-unit, $75 million apartment community on the property by mid-August.
Located 25 miles from downtown L.A., the mixed-use hub of the Warner Center looks to be a prime spot for development. According to a Marcus & Millichap report, private-sector payrolls in the Los Angeles area expanded by 9,300 positions in the first two quarters of 2011, lifting the year-over-year total gain to 17,300 jobs. With the busy Route 101 corridor nearby, the development will certainly see spillover from the biotech, high-tech, healthcare and insurance industries — and the report goes on to show that the information sector was the highest-gaining industry for the area in 2011. With jobs expanding and permits for new housing constructions dropping by 3 percent for the 12-month period ending in the second quarter as compared to the volume in the prior year, a new housing development will certainly be in high demand.
“Our Warner Park development is occurring at an ideal time,” said Brian Hansen, Wood Partners’ director of development for Southern California. “We will be building during a favorable construction market, delivering when all the supply of 2007-2010 in Warner Center has been absorbed and competing against limited new supply. It’s an attractive, well located property that we will be building at a significant discount to acquisition cost and we anticipate renting the first units in 2013 when the market will be at its most receptive.”
The Los Angeles apartment market has consistently outperformed the national averages. From 1999-2007, Los Angeles posted an average occupancy of 96 percent and average rent growth greater than 6 percent. After bottoming out at 92 percent in the fourth quarter of 2008, the overall market has rebounded to just under 95 percent, with the San Fernando Valley submarket above 95 percent. Rents have stabilized and are expected to increase 5.8 percent in 2011 and 6.6 percent in 2012, according to Axiometrics, an apartment market-research firm.